Benin vehicles market in 2020 reports a moderate drop as the pandemic influences sales. Indeed, 327 units were sold Year To Date until August, losing 36.3% compared to last year. Toyota maintains the discussed leadership while reporting the best top 10 hold, despite losing 17.6%.
Benin’s free-market economy has grown consecutively for four years, though growth slowed in 2017, as its close trade links to Nigeria expose Benin to risks from volatile commodity prices. Cotton is a key export commodity, with export earnings significantly impacted by the price of cotton in the broader market. The economy began deflating in 2017, with the consumer price index falling 0.8%.
Market Trend Year To Date
In Benin 327 units have been sold until August 2020, reporting a loss of 36.3% compared to last year. This negative trend in the market reflects the impact of the pandemic in the region, where infections reached a peak at the beginning of August.
Brand-wise, Toyota dominates the market, reporting the best top 10 hold, with a loss of 17.6%, followed in the distance by Mitsubishi, losing 30.6%, and by Suzuki, losing 35.9%. The worst performance was registered by Skoda, losing 66.7% sales.
Medium Terms Market Trend
Benin automotive industry is still quite marginal in the African landscapes. Indeed, we talk about new vehicle sales and not on second-hands trading activity for which the country is well-known.
Thanks to the low duties and free trade agreement with neighboring countries, in the last decade the country was a trading point for used vehicles arriving from the US and Europe, with a grow from bear 200.000 units imported in 2010 to near 400.000 in 2014, An estimated 80-90% are destined for the Nigerian market. The introduction of duties imposed for imported vehicles Nigeria has dramatically reduced this flow in the last years, hitting correlated affairs in the cost side of Benin.
However, our focus is on new vehicle sales, for which the local pro capita income is still very low. Poor infrastructures, limited availability or after sales operations, cost of spare parts are all key limits to the expansion of new car sales, which anyhow are recently growing fast, starting from just 217 units sold in 2012.
The new vehicles’ market reached a peak of 1.143 units sold in 2016, while embarking on a negative pathway in the following years, with a moderate decline in 2017 (-5.7%) and a sharp fall in 2018 (-23.7%).
In 2019, the market reported the 3rd consecutive year-on-year decline, registering 747 units (-9.1%) at the lowest level since 2014.
In Q1 2020 142 units were sold, a 24.9% decrease compared to last year, illustrating a struggling market. Subsequently, in the First Half of the year, the market was hit by the COVID-19 pandemic, leading sales to 233, with a loss of 39.9%.
Tables with sales figures
In the tables below we report sales for the Top 10 Brands
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Interesting excerpts from the CFTC case against Bitmex
Wednesday October 21, 2020
Below are some excerpts from the CFTC case against Bitmex, which is separate from the DOJ case, whose indictment I haven’t read yet. Excerpts copied verbatim: BitMEX accepted bitcoin deposits worth more than $11 billion from at least 85,000 user accounts with a U.S. nexus. Despite being incorporated in the Seychelles, HDR does not have, […]
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